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nice blog David…and speaking of railroads, what do you think about CNI? I recall that you were long it once upon a time.
long CNI
I agree that it would make more sense for an east -west road to merge, BUT where is the savings? If NS and CSX came together they would have an enormous operational savings !! The rails are all planning huge expansions and billions could be saved if a synergy took place. Oh yes, the question of anti-trust; well, how about the prospect of some re-regulation to silence the shippers?
aliens8mycow, thanks for the kind words. If I were buying a railroad, I would likely buy CNI or NSC… they seem well run and cheaper.
john, a very good point… I don’t expect any significant rail mergers to be approved, even under the Bush administration. The Canadians have railraoads that go coast-to-coast, and that’s a real advantage. I guess I was considering a different set of cost advantages.
Thanks for posting, both of you.